THE Welsh Assembly Government is hitting back at claims that it has slashed the aid needed to persuade foreign firms to invest in Wales.

Figures obtained by the Welsh Conservatives reveal the level of financial incentives offered to inward investors has been halved since 2002.

The amount offered in the first half of 2008 suggests this will fall even further by the end of the year, Shadow Minister for the Economy David Melding AM said.

Official figures obtained by the party earlier this year also revealed a fall in the number of jobs created in Wales by foreign investors since 1999.

Mr Melding said the fall in direct Assembly Government aid was a further example of the anti-business agenda pursued by Rhodri Morgan’s administration.

He added: “We need to create an environment in Wales which encourages inward investment but also develops new and existing home-grown businesses.

“While clearly it is important to support successful home-grown businesses, we also need a strong mix of foreign investment.”

Details of Assembly Government grants to foreign companies show a significant drop-off in investment since 2001 and 2002. Figures obtained in response to a written Assembly question from Opposition leader Nick Bourne AM show that financial incentives offered to inward investors peaked at £78.3m for the calendar year 2002 but has since varied between £38.7m and £31.5m. For 2008 up to May the amount offered was just £3.7m.

The number of new jobs created through foreign direct inward investment fell from 4,116 in 1999/2000 to 3,369 last year. Investment fell from £512.3mto £335.5m over the same period, said the Welsh Tories.

A spokesman for the Assembly Government said: “Winning quality inward investment jobs for Wales is NOT about throwing large amounts of money at overseas companies, but is based on a range of factors, including access to a highly skilled, flexible workforce and a package of support from a business friendly, responsive government that fully understands the immediate and long-term needs of a company.

“The figures clearly demonstrates the success of our ‘offer’ – with Wales winning a disproportionate share of jobs created by foreign direct investment into the UK – with 10% more new jobs in 2007/8 than 2006/7 and almost 20% more than 2005/6.

“Many inward investment projects do not even require financial assistance.”